The Abbott government will subject two embattled government-funded indigenous bodies to an independent review to determine if they should be merged.
Indigenous Affairs Minister Nigel Scullion announced the review into Indigenous Business Australia and the Indigenous Land Corporation on Monday.
The Land Corporation has been under fire for going $200 million into debt to purchase Ayers Rock Resort for $317 million in 2010.
The resort has hit financial woes, reporting losses of more than $100 million.
A Senate hearing in November heard the transaction would harm the corporations's core functions for 15 to 20 years in the absence of a major turnaround in the Northern Territory's tourism sector.
Indigenous Business Australia last year was warned not to hold conferences that looked like "junkets".
Officials were cleared of any wrongdoing following a staffer's claims funds were misused.
The two organisations were set up to promote indigenous commercial development, land acquisition and management.
Senator Scullion said the review would look at ways to to avoid duplication and improve efforts to promote indigenous economic development.
It would consider if economic outcomes could be improved by merging the two bodies.
The review will report back by February.
